Funding gap will slow Egypt's slum redevelopment plans

Subject

Egyptian government's new policy towards informal settlements.

Significance

Some 15 million of Egypt's 82 million population live in slum areas. Around 11 million are in Cairo, constituting around 63% of the city's population. The government has identified 1,300-1,750 slum areas, classified into unplanned settlements (97%) and unsafe areas (3%). The urban poor move here to avoid the high rent rates in the formal city, yet the informality of their settlements means they do not receive adequate state services, such as education and healthcare. The Sisi government aims to tackle informal settlements as part of its efforts to increase political stability by improving low income households' living standards.

Impacts

• Improving slum areas will reduce the risk of urban protests.
• It would also establish a more stable relationship between the local municipality and the urban poor.
• The state will partially replace social services previously provided by some Islamist organisations.
• Government cooperation with the local private sector will increase.
• Resettlement policies will only succeed if coordinated with transport system upgrades or provision of jobs in the new locations.